Which of the Following Most Clearly Distinguishes Between Positive and Normative

question 138

Multiple Choice

Which of the following most clearly distinguishes between positive and normative economics?

• A) Positive economics is the study of what ought to be; normative economics is concerned with the facts.
• B) Positive economics is the study of the facts; normative economics is concerned with what ought to be.
• C) Positive economics is the study of supply and demand in narrowly defined markets such as the market for shoes; normative economics focuses on highly aggregated markets such as the market for all consumer products.
• D) Positive economics is the study of goods that are scarce; normative economics is concerned with goods that are not scarce.

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Definitions:

Identifying Risk

The process of finding, recognizing, and describing risks that could affect the outcome of a project or business operation.

Alternative Method

A different approach or technique used to achieve a goal, often considered when traditional methods are ineffective.

Risk Event

A specific occurrence that can affect the outcome of a project either positively or negatively.

Risk Response Plan

A strategy for minimizing the potential impact of identified risks on a project.